PSU banks seen with highest alpha potential

Meanwhile, the Economic Times daily newspaper is available online now.

Key points

• Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate.
• India's domestic economy remains resilient, with healthy revenue and earnings expansion despite geopolitical uncertainties, according to OmniScience Capital.
• Power shift, a déjà vu: Air India could be new CEO's toughest flight yet.
• Banking remains the most compelling opportunity, according to OmniScience, combining solid balance sheets, double-digit expansion and valuations that remain meaningfully below intrinsic value.
• The Economic Times daily newspaper is available online now.

Meanwhile, the Economic Times daily newspaper is available online now. PSU banks offer highest alpha potential; IT faces uncertainty: Omniscience Capital. PSU banks offer highest alpha potential; IT faces uncertainty: Omniscience Capital. ETMarkets.comLast Updated: Aug 21, 2026, 01: 05: 00 PM IST.

India's domestic economy remains resilient, with healthy revenue and earnings expansion despite geopolitical uncertainties, according to OmniScience Capital. The firm sees potential for 7%+ GDP expansion this fiscal year and believes India could sustain a high-growth trajectory even if the West Asia conflict persists.

India's domestic economy continues to demonstrate resilience, with revenue and earnings expansion remaining healthy despite geopolitical uncertainty, according to a report by portfolio management services venture OmniScience Capital. Even if the West Asia conflict does not end immediately, India could remain in a high-growth mode for the current and coming years if other factors remain supportive. There is a possibility of 7%+ GDP expansion in the current fiscal year, according to Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital. The markets will increasingly differentiate between firms based on their future cash flows. As per the report, undervalued businesses are projected to see their valuations improve while expensive businesses could remain stagnant until their earnings catch up.

PSU banks having strongest alpha potential.

Banking remains the most compelling opportunity, according to OmniScience, combining solid balance sheets, double-digit expansion and valuations that remain meaningfully below intrinsic value. Vikas Gupta describes it as a theme that is "completely mispriced." Within the segment, PSU banks offer the highest alpha-generation potential over the medium term. While delivering double-digit asset and revenue expansion, stated Vikas Gupta, PSU banks have some of the cleanest balance sheets in decades. He continued that the public sector banks are trading at significant discounts to intrinsic value. While midcap private banks could see their valuations unlocked earlier and potentially generate higher IRRs, OmniScience remains overweight throughout the banking sector, including PSU, substantial private and midcap private banks. Live Events.

Valuations temper enthusiasm for consumer plays.

As valuations already appear to discount significant future expansion, omniScience remains underweight on consumer discretionary despite satisfactory revenue and earnings expansion. The same valuation discipline keeps the firm cautious on hotels, where solid fundamental performance alone does not provide sufficient comfort without a meaningful discount to intrinsic value. IT faces fundamental uncertainty; AI bubble risk remains overseas.

IT remains one of the sectors to avoid, according to Vikas Gupta, owing to uncertainty around the sector's workforce required to deliver future workloads and the resulting difficulty in forecasting cash flows. "Irrespective of whether a bubble exists, the unprecedented investment by Big Tech will ultimately need to translate into revenues, profits and cash flows" Vikas Gupta remarked, adding that any potential bubble in regards to AI is more probable to be concentrated in US firms, primarily as Indian corporates are not deploying capital towards AI at comparable levels. PSU banksPSU bank stocksOmniScience CapitalWest Asia conflictmarkets newsIT stocks.

Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate. PSU banksPSU bank stocksOmniScience CapitalWest Asia conflictmarkets newsIT stocks. Train station to rocket propellants, a Nagpur firm's INR21k-cr journey. Are patients paying the cost for India's PE-led healthcare boom? Notably, the Nifty doesn't predict India. It records it.

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Taken together, the developments around PSU banks seen with highest alpha potential point to a situation that is still moving, and the coming days should bring more clarity.